The Best Tools for Tracking and Predicting Mortgage Rate Increases

I've been sitting on the sidelines of the housing market for more than a year now, waiting to see where mortgage interest rates will go. With the average selling price of a house up 27.7% over the past three years and mortgage rates surging from the Federal Reserve's increase to the federal funds rate to tamp down inflation, I've been content to wait.

But with rates beginning to fall recently, I'm keeping a close eye on where current mortgage rates are headed. Here are a few places to track where rates are right now and some predictions for where they may be moving.

1. Fannie Mae

Fannie Mae is a government-sponsored mortgage financing company that buys mortgage loans from lenders, who then use the money to lend to borrowers. The company and its mortgage financing counterpart Freddie Mac support about 70% of the mortgage lending market, according to the National Association of Realtors (NAR).

For that reason, what Fannie Mae says about where mortgage rates are headed is closely watched. The company predicted recently that mortgage rates would be 6.8% by the end of 2024 and that home sales will increase modestly throughout the year.

Some mortgage rates have already dropped below Fannie Mae's prediction, but the company also offers other resources home buyers can use. For example, Fannie Mae's mobile app helps potential home buyers and homeowners with tools like a guide to home buying, mortgage calculators, and even tips for maintaining a house.

2. Realtor.com

Many potential home buyers are already well-acquainted with the NAR's website and app, which has some of the best information for buyers, including where interest rates may be headed.

NAR economist Lawrence Yun forecasts home sales will increase by 13.5% in 2024, and mortgage rates will be between 6% and 7% by the spring.

If you want to stay on top of mortgage rates and how they impact home-buying trends, the Realtor.com app has many tools for viewing current mortgage rates, finding a real estate agent, and estimating your home's value.

3. Motley Fool Money

I'd be remiss if I didn't mention all the mortgage information and calculators Motley Fool Money offers. Sure, I may be biased as an Motley Fool Money writer, but the wealth of information on the site is undeniable. For example, potential home buyers have free access to the following:

• Current mortgage rates
• A customizable mortgage calculator
• Refinancing information
• Details on FHA, VA, and conventional loans

I've often used Motley Fool Money's mortgage calculator to price out the monthly cost for homes I'm interested in. You can adjust your down payment amount, interest rate, property taxes, and other details to customize your estimate.

Motley Fool Money even has a handy guide to mortgages that covers mortgage information for first-time home buyers and those with previous home-buying experience.

4. Zillow

Zillow is one of the most popular sources for available homes for sale and mortgage information, but the company was less inclined to predict whether mortgage rates would increase or decline in 2024.

"Predicting how mortgage rates will move is a nearly impossible task," the company said recently, adding that the recent cooling of inflation may mean that interest rates will "hold fairly steady" in the coming months.

But even with Zillow unwilling to paint itself into a mortgage rate corner, home buyers can use the company's app to stay on top of what's happening in the market. Zillow is one of my go-to apps for home searching, and the built-in mortgage calculator tool makes it easy to keep up with the current mortgage rates, no matter which direction they're headed.

How to find the best mortgage rate

Whether mortgage rates rise or fall this year, there's one surefire way to get the best one: Shop around. I talked to a mortgage lender last year who told me one of his clients found a better rate with another lender. He was honest and told the client he couldn't match that mortgage rate and that it was best to go with the other lender.

I was surprised to hear him admit that he might not be able to offer me the best interest rate, and it was a reminder that I should always shop around.

It can seem overwhelming to get multiple quotes because applying for a mortgage is time-consuming and, honestly, pretty boring. That's why using mortgage rate comparison tools is helpful to get you started and help you find the best mortgage lender for you.

Get rate quotes from at least a handful of lenders to ensure you get the best rate possible for your personal situation. You may score a better rate than you thought.